Pampa Energia's Credit Rating Upgraded to bb- by S&P Global Ratings

Pampa Energia SA's credit rating has been upgraded by S&P Global Ratings from b+ to bb-, reflecting positively on the company's financial health. This could enhance market positioning and benefit stakeholders by increasing investor confidence and access to capital. The most recent analyst rating on PAM stock is a Hold with a $93.50 price target.

S&P Global Ratings has recently upgraded Pampa Energia SA's credit rating from b+ to bb-, signaling a positive shift in the company's financial health. This upgrade is likely to enhance market positioning and benefit stakeholders by boosting investor confidence and facilitating access to capital.

Pampa Energia SA, an integrated energy company in Argentina, operates in electricity generation, oil and gas production, and petrochemicals. The company has been expanding its renewable energy and natural gas production, particularly through the Vaca Muerta shale formation. In July 2025, Pampa Energia SA submitted a $426 million proposal to build a major oil and gas processing plant in Neuquén province as part of a broader $1.5 billion expansion plan. This new facility, set to begin operations in 2026, includes a Central Processing Facility, pipelines, and storage terminals, all connected to Argentina’s existing oil and gas infrastructure. The goal is to increase production at the Rincon de Aranda field tenfold, with crude oil exports projected to generate $1.2 billion annually starting in 2027 [1].

To support its growth, Pampa Energia SA recently issued $340 million in senior notes due in 2034, raising the total to $700 million. These funds will be used to redeem existing debt and finance strategic initiatives. Operationally, the business has posted strong results, with natural gas production growing 21% year-over-year and adjusted EBITDA rising 30% in Q2 2024. Wind energy capacity has also expanded by 50% since 2017 [1].

The company is set to announce its Q2 2025 earnings on August 6th, with analysts expecting earnings of $2.73 per share and revenue of $632.05 million [2]. Analyst sentiments have shifted, with Citigroup raising the target price for Pampa Energia shares from $88.00 to $92.00 and rating them as "neutral," while Wall Street Zen upgraded the stock from "hold" to "buy" [2].

This credit rating upgrade from S&P Global Ratings is a testament to Pampa Energia SA's improved financial health and operational performance. The most recent analyst rating on PAM stock is a Hold with a $93.50 price target, reflecting a balanced view of the company's prospects [2].

References:
[1] https://finance.yahoo.com/news/pampa-energia-pam-launches-1-162358172.html
[2] https://www.marketbeat.com/instant-alerts/pampa-energia-pam-to-release-earnings-on-wednesday-2025-07-30/